Home insurance during renovation
What changes when you remodel, and how to avoid a gap while the work is underway.
Why a remodel affects your coverage
Renovation introduces risks a standard policy did not price for: open walls, stored materials, contractors and subcontractors on site, and often a vacant house. Small cosmetic projects usually sit fine under your existing policy, but larger structural work can outrun it.
What you may need
| Situation | What to add |
|---|---|
| Minor cosmetic work, still living there | Usually covered; raise dwelling limit if value rises |
| Major structural remodel | Builders risk policy for work in progress and materials |
| Moved out during the work | Vacant or dwelling-fire policy to avoid the vacancy exclusion |
| Adding square footage | Increase Coverage A to the new replacement cost |
| Contractor doing the work | Confirm the contractor's liability and workers comp |
Builders risk, briefly
A builders risk policy covers the structure under construction plus materials and sometimes equipment against fire, theft, and weather while the project is underway. It fills the window a homeowners policy leaves open during major work, then you return to a standard policy once the home is complete and occupied.
The vacancy trap during a remodel
If you move out while the home is gutted, the vacancy clause in your homeowners policy can limit coverage after 30 to 60 days - right when the home is most exposed. A vacant or dwelling-fire policy keeps it protected during the work.
Do not forget the new replacement cost
A renovation usually raises what it would cost to rebuild the home. If you finish a basement, add a room, or upgrade finishes, increase your Coverage A dwelling limit to match, or you will be underinsured on the improved home when you return to a standard policy.
Insure the project before it starts
Tell us the scope, whether you are living there, and who is doing the work, and we will line up builders risk, a vacant policy, or an updated dwelling limit as needed - so there is no gap while you renovate. Start a free quote and describe the project.
Frequently asked questions
Does home insurance cover a renovation?
A standard homeowners policy usually covers minor cosmetic work while you still live there, but larger structural projects can outrun it - especially if the home is vacant during the work. Major remodels often need a builders risk policy for the work in progress and, if you have moved out, a vacant or dwelling-fire policy.
What is builders risk insurance?
Builders risk covers a structure under construction, plus building materials and sometimes equipment, against fire, theft, and weather while the project is underway. It fills the gap a homeowners policy leaves during major work, and you return to a standard policy once the home is finished and occupied.
Do I need to tell my insurer about a remodel?
Yes, before the work starts. Most coverage gaps on renovations happen because the carrier was never told the scope. Telling your insurer lets them adjust the policy, add builders risk, or handle a vacancy so a mid-project claim is not denied for undisclosed work.
Should I increase my coverage after renovating?
Usually, yes. A remodel that adds square footage or upgrades finishes raises the cost to rebuild the home, so increase your Coverage A dwelling limit to match. Otherwise you are underinsured on the improved home and a total loss would not rebuild it.
What if I move out during the renovation?
Then the vacancy clause in your homeowners policy can limit coverage after 30 to 60 days, right when the gutted home is most exposed. A vacant or dwelling-fire policy keeps the structure protected against fire, vandalism, and liability while the work is done.
Get your free quote
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